Australia: Select Harvests to Make Landmark Acquisitions

Total Page：16

File Type：pdf, Size：1020Kb

Australia: Select Harvests to Make Landmark Acquisitions

After announcing a record profit for the 2014 financial year, Australian almond company Select Harvests Limited (ASX: SHV) has announced a AUD$63 million (US$59 million) acquisition of three properties that will help support an expected doubling of production capacity by 2018. Managing director Paul Thompson said the move followed a decision three years ago to control more almond acreage to expose the company to the crop's positive market fundamentals, while also diversifying cultivation further south to mitigate disease, pest and climate threats. "Today I'd like to announce the acquisition of three additional properties - two of them operating orchards and a third a greenfield property," Thompson said. "We've done extensive due diligence on these properties using our own internal teams and external, independent experts. "As they are currently operating orchards, we benefit from increased volumes, increasing our exposure to the current dynamic of the almond industry, plus the processing volumes will be put through our Carina West processing facility with no overhead increase." The acquisitions are set to be completed in September, with the Amaroo orchard the largest by far with 2,046 acres, compared to 435 acres on the Grewal property. Combined, these two properties will bring SHV 2,865 acres worth of plantable land, bolstered by 1,600 plantable acres from the greenfield property Mendook; the transaction is already complete for the latter. Included in the total sum is an AUD$11.2 million (US$10.4 million) investment in 6,215 megaliters in high security water entitlements. Thompson described the properties as "the platform for growth that's been missing from our existing strategy". "The biggest acquisition is the Amaroo orchard in South Australia – this is a unique, high quality asset. It will become the headquarters of our southern hub," he said of the orchard, located on the Murray River between the Victorian and South Australian border. "This acquisition effectively triples our orchards in the Riverlands and Northern Malee growing region." FreshFruitPortal.com The company's net profit after tax (NPAT) of AUD$29 million (US$27 million) is 27% higher than the underlying NPAT for 2013. "In the almond division we took advantage of the rising almond price, with the average prices moving from AUD$6.38 (US$5.86) to AUD$8.30 (US$7.72) year-on-year. There was a positive adjustment related to the larger than anticipated 2013 crop, and orchard revaluations," Thompson said. "We’ve increased our export sales and were able to keep our processing costs flat year-on- year." Thompson added global demand for almonds was expected to continue rising by 8% annually, while global supply was set to only increase by 4%. For the coming year, he felt the big issue would be how drought will affect almond crops in California. Photo: www.shutterstock.com www.freshfruitportal.com FreshFruitPortal.com.

Copy Link

Recommended publications

Platformed For
ANNUAL REPORT 2020 YEAR ENDED 30 SEPTEMBER 2020 PLATFORMED FOR OUR ORCHARDS BLOSSOM LATE JULY TO EARLY SEPTEMBER 2 Select Harvests Annual Report 2020 GEOGRAPHIC DIVERSITY The strategy to have geographic diversity between our orchards limits our exposure to the weather, the spread of disease and insect infestation. Geographic diversity also enhances the availability of labour. NORTHERN SOUTHERN HILLSTON REGION LAKE REGION CULLULLERAINE Sydney PARINGA WAIKERIE GRIFFITH EUSTON LOXTON Adelaide ROBINVALE CENTRAL REGION THOMASTOWN Melbourne PROCESSING CENTRES SELECT HARVESTS ORCHARDS AUSTRALIA PIANGIL ALMOND ORCHARD Sale and Implementation Deed entered in October 2020 1,566 hectares planted almond trees (NOT INCLUDED IN ACREAGE FIGURES BELOW) 7,696HA 2,670HA 3,078HA 1,948HA (19,016 ACRES) (6,597 ACRES) (7,605 ACRES) (4,814 ACRES) TOTAL SOUTHERN REGION CENTRAL REGION NORTHERN REGION PLANTED AREA PLANTED AREA PLANTED AREA PLANTED AREA Select Harvests Annual Report 2020 3 Select Harvests Annual Report November 2019 3 Select Harvests is one of Australia’s Company largest almond growers and a leading Selectmanufacturer, Harvests processor is one of Australia’s and marketer of Company largestnut products, almond health growers snacks and anda leading muesli. We Profile manufacturer,supply the Australian processor retail and andmarketer industrial Proﬁle ofmarkets nut products, plus export health almonds snacks globally. and muesli.We are WeAustralia’s supply thesecond Australian largest retail almond andproducer industrial and marketer markets withplus coreexport capabilities almondsacross: Horticulture, globally. Orchard Management, WeNut are Processing, Australia’s Salessecond and largest Marketing. almond These producercapabilities and enable marketer us to with add corevalue capabilities throughout across:the value Horticulture, chain.
[Show full text]
Acquisition of Piangil Almond Orchard and Capital Raising
Acquisition of Piangil Almond Orchard and Capital Raising 1 October 2020 1 NOT FOR DISTRIBUTION OR RELEASE IN THENOT UNITED FOR DISTRIBUTION STATES OR RELEASE IN THE UNITED STATES Important notice and disclaimer The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting this Presentation you represent and warrant that you are entitled to receive the Presentation in accordance with the restrictions, and agree to be bound by the limitations, contained within it. This Presentation is dated 1 October 2020 and has been prepared and authorised by Select Harvests Limited (ABN 87 000 721 380) (Select Harvests, SHV or the Company) in connection with the Company's proposed fully underwritten: ▪ 1 for 6.3 pro rata accelerated non renounceable entitlement offer of new Select Harvests fully paid ordinary shares (New Shares) (Entitlement Offer) to be made under section 708AA of the Corporations Act 2001 (Cth) (as modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84 and ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73, the Corporations Act); and ▪ institutional placement of New Shares to certain professional and sophisticated investors (Placement), (the Entitlement Offer and the Placement are together referred to as the Offer or the Capital Raising in this Presentation). The Entitlement Offer will be made to eligible retail shareholders of Select Harvests (Retail Entitlement Offer) and eligible institutional shareholders of Select Harvests (Institutional Entitlement Offer). Bell Potter Securities Limited (ABN 25 006 390 772) (Bell Potter or Underwriter) is acting as joint lead manager and underwriter of the Offer and PAC Partners Securities Pty Ltd (ABN 68 623 653 912) (PAC Partners) is acting as joint lead manager of the Offer (together, the Joint Lead Managers).
[Show full text]
Select Harvests Limited (ASX:SHV) Asia Investor Briefing January 2014
Select Harvests Limited (ASX:SHV) Asia Investor Briefing January 2014 For personal use only 1 Disclaimer & Basis of Preparation This presentation is provided for information purposes only and has been prepared using information provided by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider their own individual investment and financial circumstances in relation to any investment decision. Certain statements contained in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation. These statements are subject to risks and uncertainties. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation For personal use only 2 Rationale - Why Select Harvests? 1. Excellent Industry Fundamentals 4. Competitive Advantage: Quality Assets . Supply/Demand . 88% of SHV orchards will mature in 1 year . Counter-cyclical to USA . State of Art Carina West processing facility . Market leading brands 2. Integrated Business Model . Orchards 5. Market Environment . Processing & Packaged goods . Price and currency favourable . Large nut, seed and dry fruit trader . SHV FY13 volumes up 106% (inc. acquisitions.) 3. Culture for Improvement 6. Growth . Refreshed Leadership . Business positioning itself to grow . One Select An integrated agribusiness that controls almonds - positioned to deliver For personal use only 3 Why Almonds? - Sustainable Positive Fundamentals . Tight Supply . Long lead time to mature production (7 years) .
[Show full text]
Acquisition of Piangil Almond Orchard and Capital Raising
1 October 2020 ACQUISITION OF PIANGIL ALMOND ORCHARD AND CAPITAL RAISING Overview of Piangil Almond Orchard Select Harvests Limited (“SHV”, “Select Harvests”) is pleased to announce it has entered into an Implementation Deed and Sale Agreements to acquire the Piangil Almond Orchard from United Almonds Limited (“UAL”), Bright Light Agribusiness Pty Ltd (“BLA”) and Lake Lucas Almonds Pty Ltd (“LLA”) (the “Acquisition”). The Piangil Almond Orchard is located at Piangil in north-west Victoria, approximately 86kms from SHV’s Carina West Processing Facility. The Acquisition comprises: ▪ 1,566ha of almond orchards, of which 1,177ha are mature plantings and 389ha are immature; ▪ 1,877ML high reliability water entitlements; ▪ 622ML low reliability water entitlements; ▪ 2021 almond crop; ▪ 641ha of unplanted land; and ▪ certain plant and equipment. The Acquisition consideration is $129 million in cash plus a reimbursement of 2020/2021 growing costs incurred to the date of completion. The Acquisition will be funded via a combination of new debt facilities and the proceeds from a $120 million fully underwritten entitlement offer and placement and is expected to be low-mid single digit EPS accretive in FY2022, being the first full year of operation1. Compelling strategic rationale The Acquisition aligns with SHV’s strategy to grow and optimise its almond orchard base and the key strategic advantages of the Acquisition are as follows: ▪ Piangil Almond Orchard is a high yielding ‘top quartile’ orchard. SHV’s immediate focus will be to invest in equipment
[Show full text]
Acquisition of Piangil Almond Orchard and Capital Raising
For personal use only Acquisition of Piangil Almond Orchard and Capital Raising 1 October 2020 1 NOT FOR DISTRIBUTION OR RELEASE IN THENOT UNITED FOR DISTRIBUTION STATES OR RELEASE IN THE UNITED STATES Important notice and disclaimer The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information contained in this Presentation. By accepting this Presentation you represent and warrant that you are entitled to receive the Presentation in accordance with the restrictions, and agree to be bound by the limitations, contained within it. This Presentation is dated 1 October 2020 and has been prepared and authorised by Select Harvests Limited (ABN 87 000 721 380) (Select Harvests, SHV or the Company) in connection with the Company's proposed fully underwritten: ▪ 1 for 6.3 pro rata accelerated non renounceable entitlement offer of new Select Harvests fully paid ordinary shares (New Shares) (Entitlement Offer) to be made under section 708AA of the Corporations Act 2001 (Cth) (as modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84 and ASIC Corporations (Disregarding Technical Relief) Instrument 2016/73, the Corporations Act); and ▪ institutional placement of New Shares to certain professional and sophisticated investors (Placement), (the Entitlement Offer and the Placement are together referred to as the Offer or the Capital Raising in this Presentation). The Entitlement Offer will be made to eligible retail shareholders of Select Harvests (Retail Entitlement Offer) and eligible institutional shareholders of Select Harvests (Institutional Entitlement Offer).
[Show full text]
Select Harvests Annual Report
contents Our Mission 1 Our Strategy 1 Our Activities 1 The Business at a Glance 2 Through a focused diversifi- Our Year in Brief 4 Chairman and cation and growth strategy, Managing Director’s Report 6 Review of Operations 9 Select Harvests • Food Products Division 9 has delivered an increase • Management Services 13 • Almond Orchards 16 in profit after tax of 263% • Pesticide Products 16 over the last five years. Board of Directors 18 Management Team 19 Statistical Summary 20 Financial Contents 21 Shareholder Information Financial Reports 22 Annual General Meeting Independent Audit Report 70 The Annual General Meeting will be held on Monday 25 October at ASX Additional Information 71 the ASX Theatrette 530 Collins Street Corporate Information 73 Melbourne Victoria, commencing at 2:00pm. A separate notice of meeting has been posted to all shareholders. 2004/05 Calendar Feb Announcement of interim results Apr Payment of interim dividend Aug Announcement of preliminary full year results Sept Annual report to shareholders Oct Payment of final dividend Oct Annual General Meeting our mission To continue to develop and expand our business model to generate sustainable earnings growth into the future thereby delivering increased value to shareholders. our strategy Through an ongoing process of diversification and expansion of our income stream by leveraging our core strengths of almond growing and knowledge of edible nuts and their markets, we will continue to develop a fully integrated food company with sustained earnings growth and less volatility from agricultural risk. our activities The company has successfully transformed itself from origins as a commodity-based almond grower into a significant integrated agri-food business with a diversified income stream.
[Show full text]
Select Harvests Limited (“SHV”)
Select Harvests Limited (“SHV”) Management Briefing & Site Tour 14 March 2013 For personal use only Disclaimer Disclaimer & Basis of Preparation This presentation is provided for information purposes only and has been prepared using information provided by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider their own individual investment and financial circumstances in relation to any investment decision. Certain statements contained in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation. These statements are subject to risks and uncertainties. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation. For personal use only 2 Introduction to Select Harvests & Business Overview Paul Thompson – Managing Director For personal use only 3 Agenda 7.00am Introduction to Select Harvests & Business Overview – 30 mins • Paul Thompson (Managing Director) 7.30am Finance – 15 mins • Paul Chambers (Chief Financial Officer & Company Secretary) 7.45am Orchards – 15 mins • Peter Ross (General Manager Horticulture) 11.00am Operations – 20 mins • Bruce van Twest (General Manager Operations) 1.00pm Trading – 20 mins • Laurence van Driel (Trading Manager) 1.30pm Marketing – 20 mins • Mark Eva (General Manager Sales & Marketing - Consumer) 2.00pm Closing Presentation – 30 mins For personal use only • Paul Thompson (Managing Director) 4 Ambitions of the Day . Meet the SHV team .
[Show full text]
He Thy Gr Owth Strateg Roots
wth gro ANNUAL REPORT 2015 SELECT HARVESTS hy lt ea H ANNUAL REPORT 2015 S t ra te gic roots People Engagement Almond Critical Mass Best Systems and in Class Process Improve Value Sustainable Food Model Investment in Divisions Select Harvests Limited ABN 87 000 721 380 Company Profile Select Harvests is one of Australia’s These orchards, plus other independent Our Brands largest almond producers and orchards, supply our state-of-the-art primary The Select Harvests Food Division provides marketers with core capabilities across: processing facility at Carina West near a capability and route to market domestically Horticulture, Orchard Management, Robinvale, Victoria and our value added and around the world for processed almonds Processing, Sales and Marketing. processing facility at Thomastown in the and other natural products. It supplies both These capabilities enable us to benefit Northern Suburbs of Melbourne. Our branded and private label products to the throughout the value chain. primary processing facility has the capacity key retailers, distributors and industrial users. to process 22,000 metric tonnes of almonds We are one of Australia’s largest almond Our market leading brands are: Lucky, in the peak season and is capable of meeting growers and the country’s leading Nu-Vit, Sunsol, Allinga Farms and Soland in the ever increasing demand for both in-shell manufacturer, processor and marketer retail markets and Renshaw and Allinga Farms and kernel product. Our processing plant in of nut products, health snacks and muesli. in wholesale and industrial markets. In addition Thomastown processes over 10,000 metric We supply the Australian retail and industrial to almonds, we market a broad range of snacking tonnes of product per annum.
[Show full text]
Acquisition of Piangil Almond Orchard and Capital Raising
1 October 2020 ACQUISITION OF PIANGIL ALMOND ORCHARD AND CAPITAL RAISING Overview of Piangil Almond Orchard Select Harvests Limited (“SHV”, “Select Harvests”) is pleased to announce it has entered into an Implementation Deed and Sale Agreements to acquire the Piangil Almond Orchard from United Almonds Limited (“UAL”), Bright Light Agribusiness Pty Ltd (“BLA”) and Lake Lucas Almonds Pty Ltd (“LLA”) (the “Acquisition”). The Piangil Almond Orchard is located at Piangil in north-west Victoria, approximately 86kms from SHV’s Carina West Processing Facility. The Acquisition comprises: ▪ 1,566ha of almond orchards, of which 1,177ha are mature plantings and 389ha are immature; ▪ 1,877ML high reliability water entitlements; ▪ 622ML low reliability water entitlements; ▪ 2021 almond crop; ▪ 641ha of unplanted land; and ▪ certain plant and equipment. The Acquisition consideration is $129 million in cash plus a reimbursement of 2020/2021 growing costs incurred to the date of completion. The Acquisition will be funded via a combination of new debt facilities and the proceeds from a $120 million fully underwritten entitlement offer and placement and is expected to be low-mid single digit EPS accretive in FY2022, being the first full year of operation1. Compelling strategic rationale The Acquisition aligns with SHV’s strategy to grow and optimise its almond orchard base and the key strategic advantages of the Acquisition are as follows: ▪ Piangil Almond Orchard is a high yielding ‘top quartile’ orchard. SHV’s immediate focus will be to invest in equipment
[Show full text]
25 Nov 2020 SELECT HARVESTS
25 Nov 2020 SELECT HARVESTS – CONFERENCE PRESENTATION Please find attached a copy of a presentation that is to be given at the Westpac & AgFood Opportunities Fund Australasian AgFood Conference today, Wednesday 25 November 2020. This announcement was authorised to be given to the ASX by Managing Director, Paul Thompson. FOR FURTHER INFORMATION, PLEASE CONTACT: Paul Thompson, Managing Director & CEO 03 9474 3544 Brad Crump, Chief Financial Officer & Company Secretary 03 9474 3544 Andrew Angus, Investor Relations 0402 823 757 About Select Harvests: Select Harvests Ltd (ASX:SHV) is an ASX-listed, fully integrated almond business consisting of orchards (company owned, leased, joint venture and managed), primary processing (hulling & shelling), secondary processing (blanching, roasting, slicing, dicing, meal), trading (industrial products) and Consumer products (Brands - Lucky, Sunsol, Soland, NuVitality, Renshaw & Allinga Farms, as well as providing Retailer brands). Select Harvests imports a full range of nuts (in addition to its almonds) and a wide range of other ingredients for inclusion in their Consumer Products range. Australia is a significant global almond producer and Select Harvests are one of Australia’s largest almond companies, supplying almonds domestically and internationally, to supermarkets, health food stores, other food manufacturers, retailers and the almond trade. The company is headquartered at Thomastown on the outskirts of Melbourne, Australia while its orchards are in North West Victoria, Southern New South Wales
[Show full text]
Select Harvests Will Contribute
3ELECTß(ARVESTSß,IMITED3 !".ßßßß!".ß ß3ETTLEMENTß2OAD 4HOMASTOWNß6ICß 0/ß"OXß0/ 4HOMASTOWNß6ICß4H4 4E4ELEPHONEß ßß &A&ACSIMILEßß ßß %M%MAILßINFO SELECTHARVESTSCOMAU .4 1,$ 7! "RISBANE 3! .37 2OBINVALE !#4 6)# 4HOMASTOWN -ELBOURNE WWWSELECTHARVESTSCOMAU Select Harvests Limited Company Secretary ABN 87 000 721 380 P Chambers Registered Office Select Harvests Limited Solicitors 360 Settlement Road Gadens Lawyers Thomastown Vic 3074 Bankers Postal address Australia and New Zealand Banking PO Box 5 Group Limited Contents Thomastown Vic 3074 Auditors Telephone (03) 9474 3544 PricewaterhouseCoopers Facsimile (03) 9474 3588 Email [email protected] Share Register Our mission, strategy, activities and outlook 01 Directors Computershare Investor Services Pty Limited Our business opportunities 02 M A Fremder (Chairman) pg05 Yarra Falls Our business model 03 J Bird (Managing Director) 452 Johnston Street From the Chairman and Managing Director 04 C G Clark (Non‑Executive Director) Abbotsford VIC 3067 Our board of directors 07 G F Dan O’Brien (Non‑Executive Telephone (03) 9415 5040 Director) Facsimile (03) 9473 2562 Our executive team 08 From the Chairman and J C Leonard (Non‑Executive Director) Managing Director Our orchard development 09 R M Herron (Non‑Executive Director) Our orchard management 11 pg09 Our processing 12 Our primary processing 12 Our added-value processing 13 Our sales and marketing 14 Almond pool sales 14 Our orchard development Added-value product sales 16 Our environment, community and people 17 pg11 Statistical summary
[Show full text]
Select Harvests Limited (“ASX:SHV”)
Select Harvests Limited (“ASX:SHV”) Overseas Investor Presentation Michael Iwaniw – Chairman Paul Thompson - Managing Director June 2016 Disclaimer & Basis of Preparation This presentation is provided for information purposes only and has been prepared using information provided by the company. The information contained in this presentation is not intended to be relied upon as advice to investors and does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider their own individual investment and financial circumstances in relation to any investment decision. Certain statements contained in this presentation may constitute forward-looking statements or statements about future matters that are based upon information known and assumptions made as of the date of this presentation. These statements are subject to risks and uncertainties. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation. 2 Business Overview – Growing Together Almond Division . 14,303 acres of Australian almond orchards – Victoria, South Australia & New South Wales . 80% in cash generative mature phase – very low capex required . Improve orchard productivity through high performance farming program – top quartile yields & quality in next 2 years . 2016 Greenfield plantings – 2,500 acres – majority to account of First State Super . Continue to seek acquisition of mature orchards at the right price and land suitable for planting to almonds . Improve supply chain productivity & keep costs in bottom quartile - Project Parboil & Project H2E Food Division . Number of Brands across categories – cooking/baking, snacking, breakfast, health . Grow branded base for industrial and packaged divisions .
[Show full text]